Mandiri Sekuritas downgraded cigarette maker PT Gudang Garam Tbk
to 'neutral' from 'buy' with a target price of 51,000
rupiah on slower-than-expected stock-up inventory sales and less
aggressive raw material purchases.
"Our channel check in the Gudang Garam distribution level
unveils not much surprise in the volume sales trend during the
fourth quarter of 2012. Relatively mild hike in excise tax in
2013 drove slower stock inventory sales that caused sales
excitement during the quarter to subside," Mandiri analyst
Octavius Prakarsa said in a note on Thursday.
Further, despite falling tobacco and clove prices, the firm
did not aggressively purchase raw materials during during the
second half of 2012, he added.
Shares of Gudang Garam were up 0.6 percent at 50,450 rupiah.
The broader index was up 0.19 percent.
(Reporting by Andjarsari Paramaditha, Editing by Sunil Nair)